Date post: | 22-Feb-2017 |
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What has changed?
What’s the same?
The Product Life Cycle (PLC)
Building Your Loyalty Program ROI
Effective Customer Engagement Risk Management
Conclusion
Economy is not the only thing that has changed globally – Regulations have also..
Debit card is fast becoming payment instrument of choice Displacing cash and check For small ticket purchases
New generation of users more comfortable with debit &
appreciate “green” initiatives
Consumers taking more control of their money Increasingly aware of the cost of credit Have been focused on debt reduction
Card offers are becoming somewhat conservative Annual fees Interest rates Credit lines
Issuers are reducing credit limits and assigning lower limits at
point of approval
Penalty pricing is becoming harder to execute
Tougher risk management – no more border line approvals
Credit card remains highly profitable product within financial institutions
Issuers are attracting new clients with aggressive and different offers
Multi product clients tend to perform better across all
products – requires segmentation and smart offering
Loyalty programs and rewards schemes are becoming increasingly attractive and competitive
Important measure of sales revenues
Development of the product should be based on consumer feedback and test results
Engaging clients during the growth phase is most challenging as the focus remains on further growth
In the maturity phase, focus should shift to customer engagement to reduce decline impact
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1st 3 months are most important
Investment can be in: PEOPLE Technology and systems Marketing and advertising Product development and distribution channels
How to improve ROI:
Focus on PEOPLE – employees and customers fairly and equally Communicate often and with transparency and clarity Analyze date and create valuable information Do more segmentation and differentiate messaging using the insights
Loyalty programs generate strong financial results by engaging clients, creating increased frequency of usage, less churn, and create powerful incentive for the clients
Finding the right balance between customer preferences and
program cost are critical
Understanding how to manage the program levers also improves ROI
Increase in usage
Less Churn
Promo
Rewards Cost
Program Cost
From planning to launching a loyalty program and to manage it over time, it is important to know how the intersection of costs and revenues impact your bottom line
More flexible the program, more sustainable it is…
This allows more room to do more frequent promotions to
keep clients engaged
Communicate new features and updates in a timely fashion
Gather feedback on existing features
Upgrade and cross sell other products and services
Decrease churn or focus on retention
Better Risk Management is important to reduce impact to bottom line
Improve your Net Promoter Score
Better targeting, use of proxy information
Life cycle management to improve authorization approval rates, reduce fraud
Improve line management strategy to incentivize incremental usage
Manage delinquencies
“Your most unhappy customers are your greatest source of learning” – Bill Gates, Microsoft
“In business you get what you want by giving people what they want” – Alice MacDougal
“Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong” – Donald Porter, BA
Manage delinquencies